Medvedev: sanctions against Russian banks would be a declaration of trade war

Thursday, October 18, 2018 5:00:38 PM

The possible imposition of sanctions against the Russian bank sector will become “the declaration of trade war” but Moscow can overcome the limitations, stated Russian Prime Minister Dmitry Medvedev in an interview with Euronews. The Head of the Cabinet of Ministers stressed that the Russian economy “is able to adapt to any forms of pressure.”

“The question is why this [imposition of sanctions] is needed. The answer is that this destroys international order, including international economic order," Medvedev said.

According to the Prime Minister, the effect on Russian-American trade is negligible. “But European business is greatly affected because we have a big volume of trade," Medvedev added.

In early September, the US State Department declared the preparation of a new package of sanctions against Russia that would affect Russian banking sector. These sanctions are being introduced in response to the poisoning of former GRU officer Sergei Skripal and his daughter Julia.

Russia was unilaterally accused of being behind the attempted assassination although Moscow repeatedly denied its involvement in the incident. A week later, US President Donald Trump tasked the US Treasury and State Department to start preparing anti-Russian sanctions.

According to Fitch analysts, due to the sanctions against the Russian banking sector, foreign investors will face blocked bank accounts, losses from revaluation of securities and other disruptions.